Features

Capital Chases Southeast Multifamily Sector, Says InterFace Panel

by Kristin Harlow December 9, 2021

ATLANTA — This year marked a golden age in terms of operating or selling multifamily properties, according to Alan Dean, region president of Terwilliger Pappas, a development firm with four offices in the Southeast. But given the rising costs associated with land acquisition, materials and labor, the challenge has been putting together new deals. “Anyone that got deals done shortly after COVID hit, those deals are going to be very valuable because they’re going to be opening up with less competition on lease-up,” said Dean. Dean’s comments came during a panel entitled “What’s the Outlook for Development in 2022?” at the 12th annual InterFace Multifamily Southeast conference. The event, which took place Thursday, Dec. 2 at the Westin Buckhead hotel in Atlanta, drew more than 300 industry professionals. Joining Dean on the panel were Jay Curran, president of Charlotte, N.C.-based Crescent Communities; Woody Rupp, chief investment officer of Atlanta-based Brand Properties; Harvey Wadsworth, managing director of Atlanta-based Portman Residential; and Justin Weintraub, principal and chief development officer of Birmingham, Ala.-based Daniel Corp. Robert Stickel, executive vice chair with Cushman & Wakefield in Atlanta, moderated the panel. High prices for dirt, long entitlement processes and increased competition in the marketplace have …

December 9, 2021

Build-to-Rent Conference Coverage Development Features Multifamily Single-Family Rental

InterFace Panel: Site Costs, Entitlements Processes Contribute to Build-to-Rent Projects’ Unique Risk Profile

by Taylor Williams December 7, 2021

ATLANTA — The build-to-rent (BTR) space boasts a scintillating story of short-term success, driven by demand from households that rent by choice and want the feel and privacy of owning a home without dealing with maintenance and paying property taxes. Building to rent involves developing residential properties with the explicit, predetermined purpose of renting them. This differs from single-family rental (SFR), a more established practice of buying existing single-family homes and renting them out that has its roots in mom-and-pop investments but is now being adopted by larger companies. The rapid growth of the BTR space has brought challenges that are markedly different from those of building and operating traditional multifamily and student housing properties. A panel of experts outlined some of these commonplace hurdles at the 12th annual InterFace Multifamily Southeast conference on Thursday, Dec 2. About 350 industry professionals attended the event, which took place at the Westin Buckhead hotel in Atlanta. For starters, the space can be a tough one to break into. Developers undertake different strategies for launching their BTR platforms and divisions, frequently partnering with single-family homebuilders or leveraging existing relationships with third-party general contractors. This is largely because these developers often lack the in-house …

December 7, 2021

Content Partner Features Leasing Activity Lee & Associates Midwest Multifamily Southeast Texas Western

Six Factors Helping to Power Interest in Multifamily Markets

by Sarah Daniels December 6, 2021

When the pandemic engulfed the world last year, few analysts predicted that the multifamily sector would flourish and thrive so well. Most suspected that the sector would be on life support. Yet, despite a year-long national eviction moratorium, there hasn’t been a better time to be a big apartment-building landlord. Multifamily-property values have increased 13 percent since before the pandemic and more money is being invested now in apartment buildings than in any other type of commercial real estate. How did this happen and what explains this? Lee & Associates’ research will delve into why the multifamily sector, contrary to past predictions and present-day misperceptions, is flourishing as never before. 1. Measured on an annual basis, national asking rents rose 10.3 percent in August. That marked the first double-digit increase in the more than 20 years the data of 13 million professionally managed apartments has been collected, and in several cities, the rent increases were much more significant than the national figure.[1] August rents rose more than 20 percent year-over-year in Phoenix, Las Vegas and Tampa. Similarly, monthly rents were up more than 20 percent in comparable markets such as Boise, Idaho and Naples, Florida. 2. Multiple factors explain this …

December 6, 2021

Conference Coverage Features Georgia Multifamily Southeast Southeast Feature Archive

Rapid Rent Growth Spurs Wave of Multifamily Investment Sales, Says InterFace Panel

by John Nelson December 3, 2021

ATLANTA — The third quarter of 2021 was the most prolific quarter on record for U.S. multifamily investment sales, according to Real Capital Analytics (RCA). Apartment sales volume totaled $78.7 billion for the quarter, a 192 percent increase from third-quarter 2020 and a 59 percent jump from third-quarter 2019. RCA data shows that the dollar amount of assets traded this past quarter exceeded the average annual sales from the period 2008 through 2011. James Mehalso, managing director of transactions for PGIM Real Estate, expects his firm to keep its foot on the gas for next year on both the acquisitions and sales side for multifamily assets. “The rental market is hot,” said Mehalso. “We don’t see it really changing much in 2022, at least in the first six months.” Mehalso’s comments came Thursday, Dec. 2, during a panel discussion as part of the 12th annual InterFace Multifamily Southeast conference hosted by France Media and the InterFace Conference Group at the Westin Buckhead in Atlanta. Moderated by Paul Berry, vice chairman of CBRE, the panel was titled, “After a Wild 2021, What’s the Investment Market Outlook for 2022?” The event, which attracted more than 300 industry professionals, marked the return of …

December 3, 2021

Bohler Content Partner Features Midwest Northeast Retail Southeast Texas

Outside the [Big] Box Tips for Filling Empty Retail Space

by Sarah Daniels December 2, 2021

Mall and shopping center owners nationwide are faced with the vacancy of major big box anchors that have closed their doors due to the continued uptick in online retail and changing shopping habits and desires of today’s consumers. Often massive, these two-story, or even three-story spaces seem impossible to fill with the decline of most brick and mortar retail stores. Developers are being challenged to think outside the [big] box to find new tenants and creative uses for the space. Malls were originally thought of as community centers for neighborhoods during the mall boom. That attitude fell by the wayside as malls removed their socially engaging aspects and lost their sense of place — instead of being a place for the community to gather, the mall became simply a place to shop. Now, largely expedited by the pandemic, there have been seismic shifts in retail and shopper habits/what the consumer wants out of their shopping experience. The key word here is experience. Malls have had to readapt to fill in vacant spaces from large department stores that consumers no longer favor. This has opened up a lot of atypical uses, from distribution centers to residential to entertainment components to medical facilities. …

December 2, 2021

Features Hospitality

Travel, Employment, Supply Chain Issues All Impact Hotel Sector, Says CBRE Report

by Jeff Shaw November 30, 2021

DALLAS — Since the COVID-19 pandemic began there have been many changes in travel, employment and supply chain issues, all of which have an effect on the hospitality sector, according to the U.S. Hotels State of the Union: CBRE Hotels Research Report. Dallas-based CBRE released the report earlier this month. Travel rebounds Regarding travel, the sector seems to have picked up momentum. CBRE says air travel is above 80 percent of pre-COVID-19 levels after high levels of travel during Halloween this year. Also, hotel cancellations have remained fairly steady since the beginning of the pandemic. In March 2020, there was a huge spike in hotel cancellations, but since then, cancellations have remained fairly low for most of 2021 with a slight increase in July 2021. Additionally, international travel restrictions are hurting the U.S. hospitality sector. This year, there has been considerably less international travel spending in the country than pre-pandemic with August 2019 seeing around $12 billion in spending versus around $2 billion in August 2021. Another change since the pandemic is that most of the inbound travelers are now coming from Latin America, with the top border entrants from Mexico, Colombia, Peru and Ecuador in August 2021. Two years …

November 30, 2021

Features

2022 Outlook: Residential to Remain Strong, COVID-Impacted Asset Classes to Bounce Back

by Taylor Williams November 23, 2021

By Paul Getty, president & CEO, First Guardian Group The calendar year is rapidly drawing to a close, and society is moving closer to pre-pandemic normalcy. As 2022 approaches, we expect a combination of more-of-the-same trendlines punctuated with a few new developments that will reshape the residential and commercial real estate landscapes in 2022. Asset-Specific Predictions Due to a combination of scarcity, demand and historically low interest rates, betting on the strength of residential real estate, both single- and multifamily alike, seems like a low-risk proposition in 2022. According to the National Association of Realtors, the country is currently experiencing a housing shortage of some 6.8 million units. The Brookings Institute reports that millennials now make up more than half of the U.S. population, and a growing percentage are hoping to start families and buy homes. Thanks to the Federal Reserve’s accommodative policies, the golden era of low-cost financing will continue into 2022. Many landlords and commercial real estate owners hit pause on rent increases amid the pandemic. But 18 months into the public health crisis, we’re seeing rent hikes across the country for investors to catch up and return to normalized rates of return. The constrained supply of single-family …

November 23, 2021

Company News Features Heartland Feature Archive Hospitality Industrial Mixed-Use Multifamily Northeast Feature Archive Office Retail Southeast Feature Archive Texas & Oklahoma Feature Archive Western Feature Archive

Forecast Survey: What’s Your Take on Commercial Real Estate in 2022?

by John Nelson November 18, 2021

The editors of REBusinessOnline.com are conducting a brief online survey to gauge market conditions in 2022, and we welcome your participation. The survey should only take a few minutes to complete. Questions range from property sectors that you are most bullish on heading into 2022 to trends in deal volume to your outlook for interest rates. The results of our 11th annual survey will be collated and published in the January issues of our regional magazines. Conducting these surveys is part of our mission at France Media to provide readers with indispensable information, and we couldn’t do it without your help. To participate in our broker/agent survey, click here. To participate in our developer/owner/manager survey, click here. To participate in our lender/financial intermediary survey, click here. (Note: Please remember to click on “done” to properly submit the survey.)

November 18, 2021

Features Retail

A Cinematic Horror: How the Pandemic Has Impacted Movie Theater Property Values

by Kristin Harlow November 16, 2021

By Molly Luhrs, Popp Hutcheson Diminishing tax liability may offer a silver lining amid a horror show of declining property values playing out for owners of silver screen properties across the nation. Many theater owners will pay more than their fair share in property taxes, however, unless and until they educate local tax assessors of the sinister influences that oppress their businesses. Movie theaters have been one of the hardest-hit industries during the COVID-19 pandemic. Spaces where the big screen once lit the faces of attentive viewers fell dark and silent, to sit lifeless for months. Studios released only 23 films in 2020, the fewest since 2003, and box offices sold less than 225 million tickets. As regulations eased, cinemas emerged far behind the pack of other businesses in a race to resume normal operations. Now, most states are allowing 100 percent occupancy in movie theaters; however, this does not mean movie-goers are rushing back to theaters. What is there to attract them? Some of the most anticipated new movies had their 2020 premiere dates pushed to middle or late 2021, with some even transitioning directly to streaming platforms like HBO. On top of the lack of content, theaters are …

November 16, 2021

Features Life Sciences

Elevated Tenant Demand Reshapes Life Sciences, Laboratory Facility Designs

by Taylor Williams November 11, 2021

By Isabel Mandujano, director of lab planning, LPA Inc. The COVID-19 pandemic brought to the forefront the importance of research and innovation in life sciences, which is driving incredible demand for new construction of these and laboratory facilities. At the same time, an increasing focus on the health and wellness of life sciences workers is pushing innovation in the way these facilities are designed and constructed — as well as with regard to the roles these spaces play for employees and surrounding communities. Adaptive Reuse The biggest challenge within this space is getting life sciences facilities built fast enough to meet the high tenant demand. One common solution is to adaptively reuse existing office space, which has become increasingly available with continued work-from-home and hybrid work schedules for traditional office workers. In addition to being a more environmentally friendly solution, this approach shortens project timelines significantly and allows end users to move in and start using the space much more quickly. The conversion of space that was not originally designed for laboratory use comes with the complex technical challenges of upgrading the required infrastructure and adapting less-than-ideal physical space. An integrated team of architects, designers and engineers is best suited …

November 11, 2021

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